The bullish momentum that carried risk assets through October faltered this week. Hawkish commentary from Federal Reserve Governors after the October 29 rate cut unsettled markets, dropping the odds of another cut in December from 90% to 70%. The U.S. dollar strengthened, gold retreated to around US$3,900 per ounce, and equities were mixed, with the S&P 500 flat, Dow down 0.2%, and Nasdaq up 1.6%.
Market Highlights
- Crypto liquidations: US$1.3 billion in positions were wiped out, mostly long trades in bitcoin and Ethereum.
- Balancer exploit: A precision‑error vulnerability drained US$128 million across multiple chains.
- Ethereum Fusaka upgrade: Scheduled for December 3, introducing PeerDAS to advance layer‑2 scaling.
- Solana ETFs: Grayscale and Bitwise launched new U.S. Solana ETFs, attracting US$421 million inflows.
- Legislation: Representative Ro Khanna proposed banning U.S. policymakers from owning crypto.
Bitcoin
Bitcoin opened at US$114,561 but fell to US$106,279 before sliding further to US$99,700. Liquidations totaled US$1.3 billion, with BTC accounting for nearly US$300 million. Investment products saw US$946 million in outflows. Notably, SpaceX moved 281 BTC worth US$31 million, while Strategy added 397 BTC, bringing its total holdings to over 641,000 BTC.
Ethereum
Ethereum dropped from US$4,159 to US$3,552, then to US$3,150, a 21% weekly decline. Despite the sell‑off, ETH funds saw US$57.6 million inflows. The Fusaka upgrade promises cheaper, faster transactions by building on the Dencun upgrade’s “blobs” feature. SharpLink Gaming committed US$200 million to staking and DeFi via Linea, while BitMine added US$294 million in ETH, raising its treasury to 3.4 million ETH.
Altcoins
Sentiment remained bearish, with the fear and greed index at 27.
- Internet Computer (ICP) surged 104% after unveiling its DFINITY 2.0 vision.
- Ethena (ENA) fell 34% amid token unlocks and profit‑taking.
- Story (IP) declined 28% after recent highs.
- Aptos (APT) dropped 27% despite strong network growth.
ETFs and Institutional Moves
Digital asset ETFs saw US$360 million outflows overall, but Solana funds bucked the trend with US$421 million inflows. New ETFs launched for Litecoin and Hedera, while Bitwise and Grayscale announced plans for XRP and Dogecoin ETFs. The SEC is currently reviewing over 90 crypto ETF applications.
Other Developments
- Western Union filed trademarks for “WUUSD,” signaling a stablecoin launch on Solana in 2026.
- Nasdaq reprimanded TON Strategy for improper token acquisition.
- Animoca Brands announced plans for a Nasdaq listing via reverse merger.
- Custodia Bank lost its appeal for a Federal Reserve master account.
- The European Central Bank advanced its digital euro project, targeting issuance in 2029.
Key Takeaways
- Macro uncertainty drove risk‑asset sell‑offs and crypto liquidations.
- Ethereum’s Fusaka upgrade is a major milestone for scaling.
- Solana ETFs show institutional appetite despite broader outflows.
- Security risks remain front‑and‑center with the Balancer exploit.
- Regulatory pressure intensifies with proposed bans on policymakers holding crypto.
